CNOOC inks deal with Qatar Petroleum

Sep. 2, 2009 (China Knowledge) - CNOOC Middle East, a subsidiary of China National Offshore Oil Corp, on Aug. 31 signed a 25-year agreement with Qatar Petroleum to explore offshore oil and natural gas at Block BC, sources reported.

According to the agreement, in the first five years, CNOOC Middle East will drill three wells in Block BC, which covers an area of 5,649 square kilometers. The wells will cost around US$100 million. 

Abudullah Al-Attiya, Qatar's deputy prime minister and minister of energy and industry, said that Block D will invite bids in the near future and that the country intends to start more offshore oil and natural gas exploration projects next year.

Reportedly, CNOOC signed a 25-year contract with Qatar Petroleum to purchase 2 million tons of liquid natural gas per year.

CNOOC is considering injecting RMB 45 billion into a refining project in Dongying Economic Development Zone, Shandong Province, according to an engineer of the State Administration of Petroleum and Chemical Industries, China Knowledge reported earlier.